Icelandic Food Guide: What to Eat in Iceland

Icelandic cuisine is shaped by the environment: a North Atlantic island with no agriculture beyond pasture, fishing grounds among the richest in the world, and geothermal energy that enables greenhouse growing. The traditional diet was almost entirely protein — lamb, fish, and dairy — with rye bread baked in the ground using geothermal heat. Modern Icelandic cooking takes these high-quality local ingredients seriously.

The Essential Icelandic Ingredients

Icelandic Lamb (Lambakjöt) Icelandic sheep spend the summer roaming free in the highlands, eating grass, wild herbs, and berries. The result is lamb with an intense, complex flavour unlike factory-farmed equivalents. Slow-braised lamb shank (lambalæri) or lamb soup (kjötsúpa) are the classic preparations. Worth ordering anywhere that serves it properly.

Skyr Technically classified as cheese, consumed as a yogurt. A cultured dairy product with a thick, creamy texture and high protein content. Icelanders eat it at almost every meal. Mild in flavour and available plain or flavoured. The Icelandic version (Íslenski skyrinn) tastes different from the international skyr sold in UK and European supermarkets. Try it plain with Icelandic blueberries (bláberjasskyr).

Icelandic Fish Arctic char (bleikja), cod (þorskur), and haddock (ýsa) are the most common. Arctic char is a freshwater species — milder than salmon, with a delicate pink flesh. Plokkfiskur (fish stew with potatoes and béchamel) is the classic everyday fish dish.

Langoustine (Humar) Iceland’s luxury ingredient. Small, sweet-fleshed lobster-like crustaceans caught in Icelandic waters. Best at the source — Höfn, the self-proclaimed langoustine capital of Iceland. Grilled with garlic butter or in a bisque.

Rúgbrauð (Rye Bread) Dense, dark, slightly sweet rye bread traditionally baked in pots buried in geothermal ground (still done at Laugarvatn Fontana and Landmannalaugar). Not something you’d eat daily for pleasure but a genuine piece of Icelandic food culture.

Traditional Dishes

Kjötsúpa — Lamb soup with root vegetables (turnip, carrot, potato). The national comfort food. Found in every café and restaurant. Approximately ISK 2,000–3,000 a bowl.

Plokkfiskur — Fish stew made from flaked cod or haddock with potatoes, onion, and white sauce. A traditional sailor’s dish. Often served with rye bread.

Skyr-based desserts — Skyrhroka (baked skyr cake), skyr with cream and sugar, skyr with Icelandic berries.

Brennivín — Iceland’s signature spirit, nicknamed ‘Black Death’. A caraway-flavoured schnapps traditionally drunk with hákarl. Clear, spirit-level strength, caraway-forward flavour. Approximately ISK 1,500–2,000 for a shot in a bar.

Pylsur: The Icelandic Hot Dog

Bæjarins Beztu Pylsur on Tryggvagata in Reykjavík has been serving hot dogs since 1937. The hot dog itself is a mix of lamb, pork, and beef. Order “ein með öllu” (one with everything) for remoulade sauce, raw onion, crispy fried onion, ketchup, and mustard. ISK 650. The most democratic food experience in Iceland.

Modern Icelandic Cuisine

A generation of Icelandic chefs have elevated local ingredients using Nordic techniques: fermentation, smoking, curing, and foraging. Restaurants like Dill (Reykjavík) have brought international attention to Icelandic cuisine. Key techniques: slow-cooking, brown butter, fermented dairy, birch smoke.

What Not to Bother With

The tourist restaurants around Laugavegur selling generic burgers and pizza are not using Iceland’s good ingredients. They exist for convenience but give no sense of Icelandic food culture. Prioritise restaurants that specify Icelandic lamb, local fish, or a chef with a genuine menu over any generic international offering.